Fiscal risk: Ahead of delivering his first MTBPS to parliament, new Finance Minister Enoch Godongwana told reporters he considered failing municipalities one of the big fiscal risks to the state.
The City of Ekurhuleni has dismissed claims that its municipal manager, Khaya Ngema, quietly resigned as a result of an investigation into R7.2-billion worth of irregular expenditure.
Ngema whose contract was controversially extended in 2012, tendered his resignation on July 11.
This was several days before the DA announced its intention to open a criminal case against him and outgoing Ekurhuleni mayor, Mondli Gungubele.
Ashor Sarupen, DA MP in the Gauteng legislature, confirmed that the opposition party opened the case against the two at the Boksburg North police station on July 22.
Rego Mavimbela, head of communications for the city, said it was “illogical” to link Ngema’s resignation to the DA’s investigation, which she dismissed as nothing but a pre-election ploy by the opposition.
In addition, Mavimbela, in a written response to the M&G said there were “no criminal charges against the leadership” of the City.
“We challenge anyone who believes that a crime has been committed to open a case and to provide evidence … in the absence of that, any such allegations are false, malicious, defamatory and calculated to tarnish the city manager’s reputation as well as that of the City.”
Ngema was appointed as Ekurhuleni municipal manager in 2009 but then had his contract controversially extended in 2012. That triggered a high court challenge, which found the extension to have been irregular. But, not according to Ekurhuleni city bosses.
Said Mavimbela: “The court did not find the contract of the City Manager to be invalid. Instead it referred the matter to the MEC for input. And the submission from the MEC in court papers was that the court should allow the contract to continue until it expired.”
Ngema enjoyed much political support from Gungubele during his term in office, and some believe he had held on to his job despite the high court ruling because it was considered to be less disruptive ahead of the elections.
Former local government MEC, Jacob Mamabolo, previously insisted that Ngema had performed his role with “admirable diligence and competence” having obtained clean audits in one of the country’s top performing councils.
Mamabolo was replaced by Paul Mashatile earlier this year.
Mavimbela said Ekurhuleni had actually turned the tide on wasteful expenditure since 2011.
“The City has been able to reduce wasteful expenditure R20.8 million in the 2013/14 financial year to R1.8 million in the last financial year. The City has also reduced its irregular spending from R235 million to R68 million in the last financial year, reducing it by a hefty amount, of R187 million.”
And, Ekurhuleni received clean audits for two consecutive years between 2013 and 2015, said Mavimbela.
The ANC put forward a mayoral candidate in the form of Mwandile Masina who goes up against the DA’s Ghaleb Cachalia. The ANC won 48.6% of the vote in the August 3 local government elections in Ekurhuleni bagging 109 seats and is currently negotiating with smaller opposition parties in a bid to seal the required 51% to govern this crucial metro.
Apology
On Monday August 1 2016, the M&G published an article in its daily online edition stating that the municipal manager of Ekurhuleni, Khaya Ngema had quietly resigned ahead of this year’s local government elections.
The article contained several factual errors in the copy as well as the caption that we regret. We unreservedly apologise to the city and Mr Ngema for this as well as for failing to seek their comment about allegations of an escalation in irregular and fruitless and wasteful expenditure between 2011 and 2015.
The city has since pointed out that there was nothing untoward about Mr Ngema’s departure.
In addition, it said that it in fact reduced such expenditure during that period and obtained clean audits for successive financial years between 2013 and 2015.
The M&G also apologises to our readers as the article was removed from our website for legal reasons.